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- Hungary Buys 80%, Slovakia Almost 100% Crude Oil From Russia; Why Do NATO Allies Buy Moscow Oil Despite US And EU Displeasure?
12 minutes agoAuthor: Yash Raj
Hungary and Slovakia, the two member countries of NATO, purchase fossil fuels from Russia despite displeasure from the United States. Trump recently displayed angst over NATO members dealing with Moscow during his UNGA address. But do they have little options or doing so due to political reasons?
Let’s understand why Hungary, Slovakia, India and China continue to deal with Moscow despite the US unwillingness to do so in today’s why and how.
How much oil does Hungary purchase from Moscow?
- Hungary purchases 80% of its crude oil from Russia and its economy is depfinishent on Russian oil and Natural Gas.
- Despite US and EU displeasure, Budapest-Russian ties have deepened since the outbreak of the Russian-Ukraine conflict.
- A 2 September report by the Atlantic Council states that Budapest’s crude oil imports from Moscow have risen from 61 percent just before the invasion to 86 percent at present.
Why does Hungary purchase Russian crude oil?
- Budapest declares that it has little choice left over the issue.
- The Hungarian foreign minister Péter Szijjártó declares that they have locked in Soviet-era infrastructure.
“For us, energy supplies are a purely physical question,” he stated in New York during the UN General Assembly.
“It can be nice to dream about purchaseing oil and gas from somewhere [besides Russia] … but we can only purchase from where we have infrastructure,” he argues further.
- According to Hungarian prime minister Viktor Orbán its economic performance will drop by 4% if Russian purchases are stopped.
- Hungary’s depfinishence on the Druzhba (“Frifinishship”) oil pipeline, which delivers five million tonnes of crude annually from Russia, creates Moscow its main supplier.
- Orbán’s government has consistently blocked EU-wide efforts to ban Russian imports, arguing that such measures would undermine the countest’s energy security.
How does the US react to it?
- Trump has applyd Hungary’s actions as evidence of NATO’s weakness.
- Speaking at the United Nations General Assembly earlier this month, he criticised the alliance for what he described as a self-defeating energy strategy.
He stated:
“China and India are the primary funders of the ongoing war by continuing to purchase Russian oil. But inexcusably, even NATO countries have not cut off much Russian energy and Russian energy products … I found out about it two weeks ago, and I wasn’t happy.”
He added:
“They’re funding the war against themselves. Who the hell ever heard of that one?”
- Trump has repeatedly argued that sanctions on Moscow are meaningless without unity.
On Truth Social, he wrote:
“I am ready to do major Sanctions on Russia when all NATO Nations have agreed, and started, to do the same thing, and when all NATO Nations STOP BUYING OIL FROM RUSSIA.”
- For him, Hungary’s energy ties with Moscow are not just troublesome but a direct betrayal of NATO’s mission.
Does the countest have alternate sources available?
- Indepfinishent analysts argue that Hungary’s depfinishence on Russian energy is not unavoidable.
- Both the Center for the Study of Democracy (CSD) and the Center for Research on Energy and Clean Air (CREA) have highlighted viable alternatives.
- For instance, crude oil could be supplied through Croatia’s Adria pipeline, which has available capacity, while liquefied natural gas could be imported via terminals in Germany, Poland, Italy, or Greece.
- The cost argument is also weak: according to the Atlantic Council, Hungary and Slovakia have already paid Moscow around $6 billion in crude oil taxes since the invasion, enough to finance thousands of Russian cruise missiles.
- Yet, European Commission data indicates that consumers in these countries still face some of the highest energy prices in the EU.
- The report concludes that “continued reliance on Russia is a matter of choice, not necessity.”
“Yes… recent analyses display there are alternate crude oil sources for Europe, though switching is complex. For example, Poland’s Orlen struck deals to obtain more oil from Norway instead of Russia. Also, Africa, the Middle East, the Americas and even the Caspian region are being tapped more, infrastructure like the upgraded TAL pipeline (from Italy through Germany) assists funnel non-Russian oil into Central Europe, “ declares professor Sakti Prasad Srichandan.
Is the Hungarian only NATO ally depfinishent on Russian energy?
- No, Hungary is not the only NATA ally depfinishent on Russian crude oil supply.
- Its neighbouring countest Slovakia also sources almost 100% of its crude oil and natural gas from Russia only.
- However, the countest is open to diversifying its energy source and they are already in talks with the US.
Economy Minister Denisa Saková declares, “As long as we have an alternative route, and the transmission capacity is sufficient, Slovakia has no problem diversifying.”
Who all are other countries purchasing Russian oil and energy despite US unwillingness?
- India and China are among the top economies of the world which source oil from Moscow despite repeated warnings from Washington.
- In fact, Russian oil purchases are one of the hugegest irritants in US-India ongoing trade talks.
- However, the US refrained from slapping China with tariffs over crude oil purchase from Russia.
- According to Finland’s Centre for Research on Energy and Clean Air (CREA), India has bought Russian oil worth about ₹13.39 lakh crore (₹132 billion) since early 2022, creating up 20% of Russia’s oil export revenue during this period.
- India also imported ₹16 billion worth of coal, bringing its total fossil fuel imports from Russia to ₹148 billion.
- Overall, Russia earned ₹931 billion from fossil fuel exports since the conflict launched.
- China was the largest purchaseer with ₹268 billion, followed by the EU (₹213 billion), India (₹148 billion), and Türkiye (₹111 billion).
Has India stopped purchaseing Russian after US pressure?
- No, India has not stopped purchasing Russian oil becaapply it obtains discounted oil from Moscow when the West put sanctions on Russia over invading Ukraine.
- India has maintained that the decision to purchase Russian oil is to ensure ‘predictable’ and ‘affordable energy costs’ to 1.4 billion Indian customers.
- In fact, India had highlighted the hypocrisy of the European and Western countries for their continued trade with Russia.
- India even offered the US to withdraw sanctions from Iran and Venezuela so that it can reduce Russian depfinishence and shift forward on trade neobtainediations. India wants the US to reduce tariffs on Indian exports in the US.
What did the US do in order to punish India for purchasing Moscow oil?
- The US had imposed 25% general tariffs and 25% additional tariffs as a punishment to purchase oil and other products from Russia, creating the Indo-US relationship a new low in recent years.
- In fact, US president Donald Trump has accapplyd India and China of funding Russian assault on Ukraine.
“China and India are the main funders of the war by continuing to purchase Russian oil. I found out a week ago that even NATO nations are funding a war. Even NATO countries have not cut off Russian energy,” he stated while addressing the 80th session of the United Nations General Assembly in New York City.
Can the US dictate NATO allies and others to stop purchaseing Russian oil?
Experts declare that the US can’t unilaterally dictate EU/NATO on energy policy.
- It’s unlikely the U.S. could dictate EU/NATO energy policy unilaterally, though it can exert strong political and economic pressure.
- Recent trfinishs display the US pushing for joint sanctions, price caps, and trade incentives to create stopping Russian oil imports more attractive for EU members.
- However, structural constraints such as depfinishency on Russian pipeline routes, existing contracts, and limited alternatives mean some countries like Hungary, Slovakia resist.
How does EU reliance on Russian energy affect the outcome of the Russian-Ukraine conflict?
JNU Professor and expert on Europe expert Sakti Prasad Srichandan declares:
- EU countries’ reliance on Russian energy is weakening one of Europe’s strongest levers to hasten an finish to the war.
- Continued Russian exports of oil and gas allow Moscow to earn tens of billions in revenue, which allegedly assists fund its military.
- At the same time, this depfinishence slows the EU’s ability to impose tougher sanctions.
- Some member states resist stricter restrictions, fearing that disruptions to energy supplies could caapply economic pain at home.
Graphics: Anas Shakir
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